Could Ancient Barter System Save Space Station?

The Russians Still Don't Have The Money To Pay Contractors. Nasa Thinks The Country Should Consider Trading Oil.

March 5, 1997|By Sean Holton Washington Bureau

WASHINGTON — How many barrels of oil is a space station worth?

Don't laugh. To help Russia pay for its part of the orbiting laboratory of the future, NASA said Tuesday it may be ready to turn back civilization's clock to an age when traders bartered for goods instead of paying in cash.

That was just one of the unusual suggestions floated at a congressional hearing that demonstrated what an odd new orbit NASA's beleaguered, flagship program has entered this year.

Scenarios envisioned by worried lawmakers had anyone from Texas oilmen to Russian mobsters underwriting large chunks of what used to be known as Space Station Freedom.

The core problem is that Russia, which in 1993 signed on as one of NASA's partners in building the $43-billion international space project, doesn't have the hard cash to pay its contractors who are building crucial station components. That has delayed work on those parts and has thrown the whole program off schedule.

NASA Administrator Daniel Goldin told the House space subcommittee that, despite assurances from the Russian government, there is still no hard evidence that the required $100 million had started flowing to contractors by a deadline last Friday.

He said NASA was exploring the possibility of ''bartering arrangements'' under which Russia would effectively pay for its share of the project with oil, natural gas or by leasing advanced technologies to the U.S. government.

''I would say that is one of the tools in our tool kit,'' Goldin said. ''I think it's a very creative solution.''

Subcommittee chairman Dana Rohrabacher, R-Cal., who encouraged Goldin on the subject, said he also raised the bartering idea on a trip he took to Russia last month with U.S. Reps. Dave Weldon, R-Palm Bay, and James Sensenbrenner, R-Wis.

''There are things of value that they (Russians) have that we would like as a nation,'' Rohrabacher said. ''Many of these have military applications. Titanium welding processes, for example . . . energy storage technologies, as well as laser technologies.''

Then U.S. Rep. Joe Barton, R-Texas, pushed the concept a step further - from public to private sector. He said U.S. oil companies could negotiate to buy or lease some of Russia's vast petroleum resources, provided Russia guaranteed it would apply the cash proceeds to space station construction.

''I'll be happy, if it's legal and appropriate, to provide you with a list of qualified private entities in Texas with experience in oil and gas that would be more than happy to work with NASA and pay world-market rates for those commodities,'' Barton told Goldin.

Barton's notion of having Texas oilmen help the Russians blaze new trails in space is a long way from what President Reagan had in mind when he launched the program in 1984. With the Cold War approaching its climax, Reagan saw the station as a way of keeping up with what he dubbed the ''Evil Empire.''

With the end of the Cold War, the United States invited Russia into the program as a way to save money and build diplomatic bridges to the fledgling capitalist nation.

The darker side of Russian capitalism was another subject of Tuesday's hearing. Sensenbrenner sought assurances from Goldin that the Russian Space Agency would not borrow space station cash from banks ''owned and operated by corrupt or undesirable groups.''

Sensenbrenner said loans from such sources would result in ''an additional element in the space station that I don't think any of us want.'' He added it was NASA's duty ''to protect the American taxpayer from the tentacles of these groups getting into the space station program.''

Goldin said he doesn't yet know which Russian banks may make space station loans. But he suggested it would be up to the White House or other federal agencies - not NASA - to determine whether a given Russian bank was controlled by criminals.

''I would like to refer that to someone in the administration,'' Goldin said. ''NASA does not do those types of things.''